In a Brad Garlinghouse vs. Jamie Dimon crypto showdown, the chief is not the least bit intimidated by his Wall Street rival.
Ripple CEO Unloads on JPMorgan Cryptocurrency at DC Blockchain Summit
Garlinghouse was featured as the at DC Summit 2019, where he gave a fireside chat with Nasdaq’s Jill Malandrino.
The elephant in the room, metaphorically speaking, was the recent of Wall Street bank JPMorgan issuing the JPM Coin for its institutional clients.
Garlinghouse, who has been known to sport red socks with his suit, didn’t back down from the line of questioning, even sounding like a team player at times for the industry:
“I think it’s great for the and crypto industry to have players like JPM leaning in. Thumbs up. That’s great. That’s the only nice thing I’m going to say about this.”
DC Summit
March 6th 2019
Brad Garlinghouse talking about JPM Coin— ༜༝🅂🅃🅄🄰🅁🅃🅇🅁🄿💧⚡ (@stuart_xrp)
Garlinghouse: JPM Coin Doesn’t Solve any Problem
According to Garlinghouse, it was only a matter of time for banks to enter the crypto fray. Nonetheless, for and the industry to achieve mainstream , products such as decentralized apps and coins must solve some type of problem for users. Garlinghouse went down that trail, exploring the .
For instance, JPM Coin resembles a , given its 1:1 backing by the U.S. dollar. Institutional , however, must give the bank a dollar for every JPM Coin they transact in, after which time the can only be moved within the confines of the centralized JPMorgan .
“Wait a minute, just use the dollar”, Garlinghouse quipped, adding: “I don’t understand what problem that solves.”
As predicted, banks are changing their tune on crypto. But this JPM project misses the point – introducing a closed network today is like launching AOL after Netscape’s IPO. 2 years later, and bank coins still aren’t the answer
— Brad Garlinghouse (@bgarlinghouse)
Ripple CEO: ‘I Don’t Get It!’
As a -powered cross-border payments startup, uses XRP in its flagship products for banks to settle payments with one another in a faster, cheaper way.
For instance, problems with the SWIFT network reportedly attracted one of ’s most recent , , to use XRP via xRapid for payments. Additionally, -based payments startup BeeTech Global is in the Latin American region to achieve significant cost savings. BeeTech has traded in its SWIFT network fees for remittances for ’s technology, with fees falling from “$20 to $2 per transaction in the process.”
JPM Coin is on the fringes of what does but stops short of displaying even a hint of decentralization, ’s own argument surrounding decentralization notwithstanding.
Garlinghouse explained how he previously questioned a representative about whether that firm would be using JPMorgan’s crypto , to which the response was “probably not.” He then went on to question whether Citi, Bank of America, or PNC would have any interest in JPM Coin, concluding: “The answer’s no.”
He lamented that if this means that “we’re all going to have these different coins,” the industry is back to square one with a lack of interoperability.
“I don’t get it,” he complained.
Here’s where he is willing to take one for the team, saying that even if the only problem that JPM Coin solves is “JPM being associated as they’re leaning into crypto, yay.”
Published at Sat, 09 Mar 2019 22:45:49 +0000
